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Hudson Contract wins ASA complaint

ASA rules that a complaint against Hudson Contract did not breach advertising rules.

A complain lodged with the ASA (Advertising standards Authority) argued that the claims Hudson was making on their website in relation to contesting HMRC employment claims was false. The complainant stated it was impossible to claim 100% “Guarantee in Tax and Employment issues” therefore Hudson Contract using this in their sales material was misleading.

Another point the complainant raised was the Hudson Contract claimed “we are … able to offer clients a full guarantee – backed by an indemnity” and that this was contradicted by something mentioned on their website:  “We are sometimes asked if we have an insurance policy to back our Guarantee … The answer … is ‘no'”.

In response to these allegations, Hudson contested that the complainant misunderstood the service Hudson Contract offered. They explained that Hudson Contract would engage sub-contractors on behalf of a contractor looking to use the sub-contractors construction services, in this way Hudson Contract was responsible for all employment matters and not the contractor.

Hudson contract also presented evidence outlining the legal fees they had paid on 36 employment tribunal cases, all of which they had successfully defended.

The second point referring to weather Hudson Contract had an insurance policy to back their guarantee was also not upheld as after analysing the evidence the ASA understood that just because Hudson Contract offered to back up their guarantee with indemnity did not mean it was backed by insurance, only that Hudson Contract was responsible for 100% of the liabilities and not the contractor.

The ruling by the ASA that Hudson Contract could claim 100% guarantee for contractors from any employment tribunal claims comes as good news for Contractors using a CIS Contract Company as this is based on the simple principal that once the sub-contractor signs a contract with the CIS Payroll Company it becomes its employer and is responsible for all employment related matters and the Contractor is free from any employer duties.

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If you would like more information regarding CIS Contracts then feel free to give us a call 0113 8267260.


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